Mahindra and Mahindra have announced that the brand has entered into definitive agreements with Indian ridesharing company Meru to buy their respective stakes in the company.
Mahindra acquires 100% shareholding in Meru.
Mahindra and Mahindra will acquire 44.14% shares from Private Equity investor, True North and other for an amount of INR 76.03 Crores. The brand also announced that it would be acquiring 12.66% shares from Mr Neeraj Gupta and Mrs Farhat Gupta. Mahindra is acquiring the shares from Mr Neeraj Gupta and Mrs Farhat Gupta for INR 21.63 Crores. This will enhance Mahindra’s current shareholding in Meru from 43.20% to 100%.
Mr Neeraj Gupta is the founder of the revolutionary cab-hailing service. He is also the CEO and Director of Meru, and its subsidiary company Meru Mobility Tech Private Limited. The founder of Meru Cabs is also the Director of V-Link Automotive Services Private Limited and V-Link Fleet Solutions Private Limited, Meru’s two other subsidiaries. Now with Mahindra at the helm, Neeraj Gupta stepped down on 30th April 2021. He will continue to work as a company employee until 30th June 2021.
Meru Cabs History
Neeraj Gupta started the cab-hailing service back in 2006. The brand then offered an air-conditioned cab service at the doorstep of the customer using a phone call. The cab-hailing service was an icon in India and became a household name in the mobility service. Meru Cabs has a big presence in the airport transfer business, employee transportation services to corporates and ride-hail segment. According to Neeraj Gupta, “the time is right” to “hand over Meru in the safe hands of the Mahindra Group”. The founder also said that he “wants to pursue newer interests” but did not elaborate on the same.
With effect from 1st May 2021, Pravin Shah, former President Automotive, M&M, has been appointed as the CEO of Meru and its subsidiary companies. The new CEO of the company will take on the responsibilities of developing a successful and scalable business.